Iamgold Corporation · TSX:IMG
Iamgold — TD Securities Mining Conference 2021
53 slides from Iamgold's conference presentation, January 2021
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference January 27-29, 2021 TSX: IMG l NYSE: IAG
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than s
Slide 3: Technical Information and Qualified Persons
Technical Information and Qualified Persons The Mineral Resource and Reserve Estimates contained in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The Qualified Person (“QP”) responsible for the review an
Slide 4: IAMGOLD – Positioned for Profitable Growth
IAMGOLD – Positioned for Profitable Growth • Three operating mines on three continents with 2021 guidance of 630-700koz1 Diversified Operating I • Disciplined approach to realizing value – targeting a self-funding model at each operation Portfolio • Operating improvements: Essakane optimization, Sar
Slide 5: Strategic Focus
Strategic Focus TRANSFORMATION THROUGH ORGANIC GROWTH TO REALIZE VALUE Strategic Deliverables Strategic Focus • Improved consolidated costs / increased margins / • Achieve self-funding at each operating site positive cash flow • Increased gold production • Sequence development of organic growth • Gr
Slide 6: Diversified Operating Portfolio
I Diversified Operating Portfolio Diversified Operating Portfolio GLOBAL OPERATING, DEVELOPMENT AND EXPLORATION PROJECTS ATTRIBUTABLE M&I RESOURCES1 Operating Mine 30% Development Project Advanced Exploration Strategic Equity Interest 36% North America NORTH AMERICA West Côté Gold Africa 27.2 Westwo
Slide 7: 2020 Preliminary Operating Results
I Diversified Operating Portfolio 2020 Preliminary Operating Results1 IAMGOLD ACHIEVED THE MID-POINT OF 2020 PRODUCTION GUIDANCE2 ATTRIBUTABLE GOLD PRODUCTION 2020 2020 (000s ounces) Q1/20 Q2/20 Q3/20 Q4/20 ACTUAL GUIDANCE Essakane (90%) 84 83 94 103 364 350 – 370 Rosebel (95%) 64 52 42 52 210 210 –
Slide 8: 2021 Operating Outlook
I Diversified Operating Portfolio 2021 Operating Outlook1 PRODUCTION & COST GUIDANCE CAPITAL EXPENDITURE GUIDANCE Non- (000s oz) 2021 GUIDANCE1 ($ millions) Sustaining1 Sustaining2 Total3 Essakane (90%) 365 – 390 Essakane $60 $90 $150 Rosebel (95%) 220 – 245 Rosebel $50 $75 $125 Westwood (100%) 45 –
Slide 9: Meaningful Production Growth
II Compelling Value & Production Growth Meaningful Production Growth FULLY FUNDED PEER-LEADING ORGANIC GROWTH PROFILE SUPPORTED BY SOLID OPERATING BASE (2021 Attributable Gold Production, koz2) 1,642 1,620 2024 +73% Target1 Achievable 1.0-1.3MOZ 2021 975 Guidance Pathway to 880 867 743 709 698 >1Moz
Slide 10: Building Long Term Value
II Compelling Value & Production Growth Building Long Term Value Generating Near-term Investing in Mine-Site Project Long-term FCF1 Growth Pipeline (US$M) $145.5 • Construction commenced in September 2020 NELLIGAN (75% JV) 3.2 MOZ3 • 66% project engineering QC, CANADA 1.0 G/T CANADA complete as at Q
Slide 11: Industry Leading Reserve Growth
II Compelling Value & Production Growth Industry Leading Reserve Growth 17.9Moz 18 16.7Moz IAMGOLD P&P Reserves 14.5Moz 13 11.3Moz 10.1Moz 8.6Moz +101% Growth in Reserve Base 7.7Moz 7.8Moz 8 512Moz 87 3 422Moz (18%) Decline in Reserve Base 24 395Moz 19 78 365Moz -2 349Moz 60 75 328Moz 23 69 314Moz 1
Slide 12: Côté Gold – Potential Global Tier I Gold Asset
II Compelling Value & Production Growth Côté Gold – Potential Global Tier I Gold Asset CÔTÉ HAS SIGNIFICANT DISTRICT SCALE POTENTIAL IN MINING-FRIENDLY CANADA Tier I Asset Criteria* I Mine Life >10 Years I 18+ Year Mine Life with district expansion potential • Based on only current mineral reserve
Slide 13: Côté Gold – Sensitivity to Gold Price
II Compelling Value & Production Growth Côté Gold – Sensitivity to Gold Price SIGNIFICANT LEVERAGE TO THE GOLD PRICE After-Tax Net Present Value (NPV5%) – 100% Basis1 After-Tax Internal Rate of Return (IRR) – 100% Basis1 (US$Bn) (%) Spot Gold2 Spot Gold2 $2.8 27.6% Base 25.9% $2.5 Case 24.2% $2.3 22
Slide 14: Compelling Value Proposition
II Compelling Value & Production Growth Compelling Value Proposition ATTRACTIVE UPSIDE RELATIVE TO MID-TIER PRODUCER PEER GROUP Financial Metrics1 Mineral Reserves & Net Asset Value2 PRICE / 2021E OPERATING CASH FLOW (P/CF, x) ENTERPRISE VALUE / P&P RESERVES P&P Reserves (Moz)2 (US$/oz) 9.4x 9.1x 7.
Slide 15: Strong Financial Position & Expected FCF from Operations
III Strong Financial Position Strong Financial Position & Expected FCF from Operations IAMGOLD is well positioned to execute on Côté given existing liquidity and expected free cash flow from operations Senior Notes Outstanding ~$1.5B1 EXPECTED Total Liquidity FREE CASH FLOW ($450 M) FROM EXISTING OP
Slide 16: Leverage Leader Among Peers
III Strong Financial Position Leverage Leader Among Peers DISCIPLINED APPROACH FAVOURABLY POSITIONS COMPANY AMONG PRODUCER PEER GROUP Net Debt / 2021E EBITDA1,2 0.7x Net Cash / 2021E EBITDA1,2 0.6x 0.6x 0.5x 0.4x Net 0.4x 0.4x Debt 0.1x Net (0.3x) Cash (0.4x) (0.4x) (0.5x) Source: S&P Capital IQ and
Slide 17: Environmental, Social and Governance (ESG)
IV Culture of Accountable Mining Environmental, Social and Governance (ESG) Recent Highlights * IAMGOLD supporting local beekeepers in Antioquia Municipality (Colombia) Strong ESG practices • Donations to local communities in response to the global COVID-19 crisis, allocating $1.5 million to date: –
Slide 18: Adapting to Our New Normal: COVID-19 Response
IV Culture of Accountable Mining Adapting to Our New Normal: COVID-19 Response Zero Harm© is our commitment to continually strive to reach the highest standards in human health & safety, minimize our environmental footprint, and work co-operatively with our host communities. • COVID-19 in Q3 2020: H
Slide 19: Focus on Safety: Historical DART & TRI Rates
IV Culture of Accountable Mining Focus on Safety: Historical DART & TRI Rates HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED DART1: 2020 TARGET – 0.57 2.40 TRI1: 2020 TARGET – 0.94 1.98 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.87 0.93 0.85 0.67 0.68 0.66 0.53 0.53 0.
Slide 20: Ensuring a Robust Pipeline
V Robust Pipeline of Projects Ensuring a Robust Pipeline FUTURE PRODUCTION AND GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES • Gosselin (Côté), Ontario • Diakha-Siribaya, Mali • Karita, Guinea • Monster Lake, Quebec Saramacca, Suriname Mill Optimization, Burkina Faso Côté Gold Project, Ontario • Fayolle
Slide 21: Robust Exploration Pipeline
V Robust Pipeline of Projects Robust Exploration Pipeline West Africa North America South America Fala/Fala E Grand Duc Saramacca >5 Moz Au Production >2 Moz Au <2 Moz Au Côté Construction Brownfield Advanced Greenfield Greenfield Boto Fayolle Feasibility Study Diakha-Siribaya Monster Lake Saõ Sebas
Slide 22: Upcoming Catalysts
Upcoming Catalysts 2021 KEY MILESTONES* o Rosebel Ramp-up with Saramacca o Essakane Optimized Mill o Advancing Growth Projects o Côté – Major Earthworks, Plant construction kickoff, Initiate Pre-strip o Boto – Access Road & other Project Infrastructure o Gosselin – Targeting Maiden Resource o Resour
Slide 23: Operations
Operations Photo: Wärtsilä 23
Slide 24: Rosebel Gold Mine, Suriname
Rosebel Gold Mine, Suriname 24
Slide 25: Rosebel – Long Operating History with Attractive District Upside
Rosebel – Long Operating History with Attractive District Upside OVERVIEW KEY NOTES Brokopondo district in north-eastern Suriname Ownership • Gross Rosebel Concession: 95% IAMGOLD, 5% Saramacca Development Government of Suriname First ore delivered October 31, 2019 • Saramacca UJV: 70% Road conn
Slide 26: Saramacca Update
Saramacca Update ABOVE: ROM FACILITY PAD TRUCK SHOP RIGHT: FORMWORKS & CONCRETE AT FACILITY PAD 26
Slide 27: Essakane Gold Mine, Burkina Faso
Essakane Gold Mine, Burkina Faso 27
Slide 28: Essakane – Stable Producer of ~400kozpa on a 100% basis
Essakane – Stable Producer of ~400kozpa on a 100% basis OVERVIEW KEY NOTES North-eastern Burkina Faso, West Africa Ownership • 90% IAMGOLD, 10% Government of Burkina Faso CIL (carbon-in-leach) Debottlenecking Mining • Conventional drill, blast, load and • Improve throughput and gravity NIGER Method
Slide 29: CIL/HL Feasibility Study Highlights
CIL/HL Feasibility Study Highlights HIGHLIGHTS1 KEY NOTES Mine Life 2031 CIL Optimization Study Mining Capacity 55.0 Mtpa • FS supported increasing mill throughput to 11.7Mtpa (hard rock) from 10.8Mtpa CIL Milling Capacity 11.7 Mtpa • Minimal capital outlay of $9 million with commissioning targeted
Slide 30: Westwood Gold Mine, Canada
Westwood Gold Mine, Canada 30
Slide 31: Westwood – Established Base in the Prolific Abitibi Gold Camp
Westwood – Established Base in the Prolific Abitibi Gold Camp OVERVIEW KEY NOTES Northwestern Québec Ownership • 100% IAMGOLD Current Status Mining • Underground • Assessing business continuity Method Production • Began commercial production in following seismic event in the west Status July 2014 pa
Slide 32: Westwood – “Hub-and-Spoke” Model
Westwood – “Hub-and-Spoke” Model ATTRACTIVE DISTRICT EXPLORATION POTENTIAL1 THAT COULD SUPPLEMENT EXCESS MILL CAPACITY FAYOLLE PROPERTY (OP) A B ROUYN GOLD PROJECT (UG) 100% ACQUIRED FROM MONARCH GOLD IN JUNE 2020 OPTION TO ACQUIRE 100% FROM YORBEAU RESOURCES A Fayolle • ~35 km northeast of Rouyn-No
Slide 33: Construction Review
Construction Review id COTEGOLD 3 IAMGOLD
Slide 34: Transformational Value in Canada
Transformational Value in Canada CÔTÉ GOLD – HIGHLIGHTS • NPV5% of $2.5B and IRR of 25.9% at US$1,900 / oz gold1,2 • NPV5% of $1.1B and IRR of 15.3% at US$1,350 / oz gold1,2 ONTARIO QUÉBEC • Annual gold production 469 koz at $693 / oz AISC, first 6 years2 • 18+ year potential mine life2 Kapuskasing
Slide 35: Côté Gold: Key Project Metrics
Côté Gold: Key Project Metrics C$ 10B* C$ 5B* In estimated economic activity during In wages forecast through direct PROJECT HIGHLIGHTS: GO-FORWARD UPDATE1,2 the mine’s operations and indirect job creation (100% basis, average LOM) Mine Life 18 years Open Pit Mining 70 Mtpa Mill Capacity 13.1 Mtpa (
Slide 36: Project Timeline – Key Milestones
Project Timeline – Key Milestones EXECUTION PLAN • Construction commenced at Côté in early September following ground-breaking ceremony • Fish salvage, construction camp preparation and road access development • Activities ramp-up into Q4 2020 with ~66% project engineering now complete TIMELINE Cons
Slide 37: Ground-breaking & Site Preparation
Ground-breaking & Site Preparation CHESTER CAMP – 264 MAN CAMP GROUND-BREAKING CEREMONY TREE CLEARING – 456 HECTARES COMPLETED FISH RELOCATION IN TMF AREA 37
Slide 38: Development and Exploration Projects
Development and Exploration Projects 38
Slide 39: Exploration Potential at Côté
Exploration Potential at Côté GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights1 • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au • includes: 221.4 metres grading 1.47 g/t Au CONCEPTUA
Slide 40: Boto Gold – High Margin Investment in Prospective District
Boto Gold – High Margin Investment in Prospective District OVERVIEW RESERVE AND RESOURCE1 OPTIMIZATION STUDY HIGHLIGHTS1 (100% Basis) (100% Basis) Location • Senegal, West Africa Contained Mine Capacity: Tonnes Grade Mining: open pit Ounces 38 Mtpa Ownership • 90% IAMGOLD / 10% Gov’t of Senegal (000
Slide 41: Bambouk District: Boto – Karita – Diakha-Siribaya
Bambouk District: Boto – Karita – Diakha-Siribaya BOTO GOLD PROJECT, SENEGAL Gold Price After-tax NPV6%1 After-tax IRR1 Yatela Deposit Operation (US$/oz) (US$M) (%) • Announced the receipt of the exploitation permit $2,000 $732 55% Sadiola for an initial period of 20 years $1,900 $652 50% • De-riski
Slide 42: Chibougamau: Emerging Prospective District in Quebec, Canada
Chibougamau: Emerging Prospective District in Quebec, Canada NELLIGAN (75% JV INTEREST) • 15 kilometres south of Monster Lake • Exercised option to increase undivided interest to 75% (from 51%), following completion of NI 43-101 Technical Report MONSTER LAKE (Au) • Completed initial resource estimat
Slide 43: Exploration Around the World
Exploration Around the World IP Survey – Saramacca Suriname Drill Barge at Gosselin, Ontario RC Drilling – Diakha Mali Geological Field Visit Peru Visible Gold in core Rouyn Gold Project, Quebec
Slide 44: IAMGOLD – Positioned for Profitable Growth
IAMGOLD – Positioned for Profitable Growth Diversified Operating Compelling Value & I Portfolio II Production Growth Robust Pipeline Strong Strong Financial V of Projects ESG III practices Position Culture of IV Accountable Mining 44
Slide 45: Appendix
Appendix # IAMGOLD 45
Slide 46: COVID-19 Measures Across Operations
COVID-19 Measures Across Operations Essakane, Burkina Faso Rosebel, Suriname Westwood, Canada Left: Bus pick up Left: Successful first point incorporates attempt to bring workers social distancing underground under new and reduced protocol, including numbers in each maintaining personal shuttle dist
Slide 47: Reducing Input Exposure Through Hedging
Reducing Input Exposure Through Hedging 2020 2021 2022 2023 Foreign Currency1 Canadian dollar contracts (millions of C$) 68 252 210 185 Rate range2 ($/C$) 1.30 – 1.40 1.30 – 1.47 1.30 – 1.48 1.30 – 1.46 Commodities1,3,4 Brent oil contracts (barrels) 144 588 520 170 Contract price range ($/barrel of
Slide 48: Reserves & Resources (Year-over-Year)
Reserves & Resources (Year-over-Year) ATTRIBUTABLE CONTAINED GOLD (000S OZ) As at December 31st, 2019 2019 Change 2018 Proven and Probable Mineral Reserves1 16,706 (6%) 17,864 Measured and Indicated Mineral Resources2,3 27,164 (2%) 27,850 Inferred Resources 11,965 38% 8,668 • Mineral reserves have b
Slide 49: Gold Mineral Reserves
Gold Mineral Reserves 100% BASIS RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel1 29,522 0.6 574 92,356 1.0 2,947 Saramacca1 111 0.5 2 26,090 1.8 1,531 Essakane1 — — — 124,713 1.0 3,805 Westw
Slide 50: Gold Mineral Reserves
Gold Mineral Reserves ATTRIBUTABLE RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel (95%)1 28,046 0.6 545 87,738 1.0 2,800 Saramacca (66.5%)1 74 0.5 1 17,350 1.8 1,018 Essakane (90%)1 — — — 11
Slide 51: Gold Mineral Resources
Gold Mineral Resources1,2 (Measured and indicated resources are inclusive of proven and probable reserves) 100% BASIS RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (000
Slide 52: Gold Mineral Resources
Gold Mineral Resources1,2 (Measured and indicated resources are inclusive of proven and probable reserves) ATTRIBUTABLE RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (0
Slide 53: Investor Relations Contacts
Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Senior Analyst, Investor Relations 647-967-9942